There’s a difference between a good investment and an investment that makes money. Let me explain.
You don’t have to look far to find someone who makes a small fortune in a short amount of time. It happens in every bull market. Sometimes they’re looked on with envy or jealously. And eventually, someone asks how did they do it? What’s the strategy?
It’s a perfectly normal human response because who doesn’t want to get rich too.
Except, attempts to repeat the same results…fail miserably. There are a few possible reasons why it failed. Maybe the strategy wasn’t followed to the letter. Maybe it wasn’t run long enough. Maybe behavior got in the way. Or maybe it was never the “strategy” at all.
Warren Buffett once described a fictitious contest that helps explain why often it’s simply a matter of luck. Continue Reading…